Deposits of five merged banks to be transferred to Sommilito Islami Bank next week

The process of transferring depositors' accounts from the five banks undergoing a merger to the newly formed Sommilito Islami Bank is nearing completion, according to Bangladesh Bank (BB).

The transfer of all the accounts is expected to be finalised within the next week.

Once completed, deposits of customers of the five banks will be automatically transferred to accounts at the new bank, BB spokesperson Md Areif Hossain Khan said in a statement today.

Following the transfer, depositors will be able to withdraw up to Tk 2 lakh using their existing cheque books.

Any remaining balance will remain secured in their accounts, and depositors will continue to receive profit on their deposits at the prevailing rates, he said.

The central bank spokesperson hoped that public confidence in the newly formed bank would be strengthened, as it will operate as a state-owned institution.

"As the bank will be state-owned, people's trust is expected to increase, which should significantly reduce the pressure from deposit withdrawals," he added.

The merger of the five troubled Shariah-based lenders into a single entity is part of the government's broader effort to stabilise the banking sector and restore confidence amid mounting concerns over asset quality and liquidity, according to the statement.